Microsoft has made some missteps, but in the end, they really just have two problems they need to address now, and two they need to address over the next couple of years. Ballmer has the potential to handle them, but if he doesn't get them sorted out, they'll need someone else who can.
The current problems are that they have a failed product cycle with Windows Vista, and they refuse to admit it, and they've set a goal of beating Google on Google's home turf, and they have no hope of attaining it. They need to own up to their mistakes with Vista, and announce that they will support XP side-by-side with Vista until Windows 7 ships. They also need to admit that they have no hope of winning in the search and contextual advertising businesses, and dial back their internet ambitions to try to focus on moving their Office business forward to clients interested in software-as-a-service.
Their longer-term problems are that they're losing market share to Macs and that they've ceded leadership in the browser and internet standards space to others. They need to make sure that with Win7, they deliver something people actually want, and they need to open up their internet roadmap and try to really work with standards groups instead of blowing them off.
All these problems are correctable, and Microsoft will have to make even more serious mistakes going forward to really implode their whole business. Whether Ballmer is the right guy to fix things remains to be seen.
From the article, it sounds to me like Microsoft's biggest problem is that Ballmer's direct reports are tired of dealing with him, and want him to fail.
Gates got away with the temper tantrums because everyone at Microsoft had a deep and abiding respect for him and his accomplishments, but Ballmer doesn't have that. If they can't have a living legend, they need a CEO with a little more charisma.
The current problems are that they have a failed product cycle with Windows Vista, and they refuse to admit it, and they've set a goal of beating Google on Google's home turf, and they have no hope of attaining it. They need to own up to their mistakes with Vista, and announce that they will support XP side-by-side with Vista until Windows 7 ships. They also need to admit that they have no hope of winning in the search and contextual advertising businesses, and dial back their internet ambitions to try to focus on moving their Office business forward to clients interested in software-as-a-service.
Their longer-term problems are that they're losing market share to Macs and that they've ceded leadership in the browser and internet standards space to others. They need to make sure that with Win7, they deliver something people actually want, and they need to open up their internet roadmap and try to really work with standards groups instead of blowing them off.
All these problems are correctable, and Microsoft will have to make even more serious mistakes going forward to really implode their whole business. Whether Ballmer is the right guy to fix things remains to be seen.